Ministers from the Organization of the Petroleum Exporting Countries (OPEC) agreed on Thursday to cut crude oil output by 1.5 million barrels per day (bpd), media reports suggested. Russia is believed to have also agreed in the last minute to the output cut despite initial skepticism on such a major production reduction. Nick Note: as we told you they would OPEC is cutting another 1.5 million BPD Their is one more piece to the puzzle. In order to get the whole enchilada Russia which joins the Vienna meeting on Friday has to agree. Information i have says after a little more drama they will.
Big banks’ demand for central bank cash remained very strong on Wednesday, leading the Federal Reserve Bank to add a fresh $100 billion to the financial system. The Fed added the money via what’s called an overnight repurchase agreement operation, or repo. Eligible banks, called primary dealers, sought $111.48 billion from the central bank, exceeding the $100 billion cap the Fed places on overnight repos.
The heavy demand for Fed cash reprised the strong interest seen for Fed money on Tuesday, when the Fed added even more money to the financial system. As of Wednesday morning, the total amount of Fed repos outstanding held steady from Tuesday at $195 billion.
Repo outstanding levels had been falling over the recent weeks, but have ticked up over the last two days, although they are still short of the $255.62 billion that was outstanding on Jan. 1. Driving the demand for Fed repos are highly unsettled markets, as traders and investors try to respond to the coronavirus and its potential economic impact. Treasury yields have fallen to historic lows and the Fed implemented a half percentage point emergency rate cut on Tuesday that also impacted trading and money market conditions. Some market participants have pointed to a high demand to hold Treasurys as a force pushing up short-term rates. Referring to the market where banks and firms borrow and lend cash short-term, Wrightson ICAP told clients “we expect the rise in repo spreads to unwind in the days ahead, but have no particular insight into how long that will take.” Fed repo operations take in U.S. Treasury, agency and mortgage bonds from eligible banks in a de facto short-term loan of central-bank cash, collateralized by the bonds. Primary dealers are limited in the amount of liquidity they can take in exchange for their securities, and they pay interest to the central bank to get the funds. Fed money-market interventions are designed to maintain the fed-funds rate target range. The Fed controls the fed-funds rate to influence the overall cost of borrowing in the U.S. economy as part of its efforts to achieve the job and inflation goals set for it by Congress. Fed repos had been scheduled to wind down next month, and Treasury bill buying aimed at growing reserves was supposed to be completed sometime in the second quarter. But those plans could change amid the rapidly shifting economic and financial outlook. Some in the market are already wondering if the Fed will increase the size of its temporary operations to accommodate the high level of demand from banks. Nick Note: i have not seen money pumping like this in years. To be precise 12 years…..
The OPEC meeting of ministers from OPEC, Russia, and other non-OPEC producers ended its meeting day without agreeing on a solution to the coronavirus problem, with Russia holding out, an OPEC source told Reuters on Wednesday afternoon, raising doubts that the group will get a bigger cut deal done after all. While Saudi Arabia and a few others had pushed hard for additional cuts—some as much as 1.5 million barrels per day—through the second quarter, Russia, who sits in a better place budget-wise to withstand lower oil prices, instead lobbied to merely keep the existing cuts in place through the end of the second quarter. And while President Vladimir Putin earlier this week said that Russia was willing to continue its cooperation with the OPEC+ group, it is no secret that the Russian oil companies were not eager to sign on to additional cuts.
Russian Energy Minister Alexander Novak left the Joint Ministerial Monitoring Committee meeting today after discussing the proposals for three hours.
Russia’s reluctance to sign on to cut even more oil production does not bode well for the oil markets, which have taken a severe beating by the coronavirus since the beginning of the year. Analysts have surmised that the markets were already pricing in additional cuts by OPEC+, and any failure to fulfill market expectations could have a profound negative effect on oil prices.
OPEC has routinely pulled out a win in the eleventh hour, so all hope is not lost, and the bump in the road that is Russia may serve to successfully manage expectations in a market that was primed for a cut between 600,000 bpd and 1 million bpd.
Last week, rumors surfaced that Saudi Arabia and two other OPEC members would be willing to go it alone should Russia fail to jump on board with additional cuts. Nick Note: I believe their wi be a BIG production cut with Russia or without….
Wall Street traders are pegging stock-market gains on Wednesday to Biden’s Tuesday night victories in the Democratic primary vote for a U.S. presidential candidate.. ….
Nick Bit! Bullshit this is a excuse since they got it so wrong yesterday….. Its all about global central bank coordinated quantum easing
Getty Images Democratic presidential candidate Joe Biden greets restaurant patrons at Buttercup Diner in Oakland, Calif.
U.S. stocks rebounded on Wednesday after results of the Democratic party’s primary vote to nominate a presidential candidate in November’s election boosted the chances of former Vice President Joe Biden.
On Tuesday stocks had slumped when a rare emergency interest rate cut by the Federal Reserve failed to inspire investor confidence in policymakers’ ability to counter the COVID-19 epidemic, the infectious disease that originated in Wuhan, China late last year.
The Dow Jones Industrial Average DJIA, +1.85% advanced 491 points, or 1.9%, to around 26,408. The S&P 500 SPX, +1.58% rose 43 points, or 1.4%, to 3,047. The Nasdaq Composite COMP, +1.60% climbed 108 points, or 1.2%, to 8,792.
On Tuesday, the Dow finished 785.91 points lower, or 2.9%, to 25,917.41, after being down by as many as 997.04 points. Meanwhile, the S&P 500 fell 86.86 points, or 2.8%, to 3,003.37. The Nasdaq Composite Index retreated 268.07 points, or 3%, to end at 8,684.09. antibusiness. Nick Bit: Thats why i initiated BEFORE my secret super duper spread trade secret weapon.
The bounceback in stocks on Wednesday came after the Fed jolted markets with a half-a-percentage-point rate cut on Tuesday, saying that while the economy’s fundamentals remain strong, the “coronavirus poses evolving risks to economic activity.” Investors now say other global central banks are likely to follow suit, with analysts pointing to the Bank of Canada as the next to pull the trigger on rate cuts. The International Monetary Fund’s members called on the Washington-based international organization to provide available financing for countries dealing with the economic shock of the coronavirus. This comes a day after the World Bank pledged to deploy $12 billion of funds for such nations. Stocks ended Tuesday with losses of about 3% and the 10-year Treasury note yield fell below 1% for the first time in a century and a half. “The magnitude of the market sell-off and the rapid policy reaction encouraged us to recently add to our risk positions” through additional exposure to U.S. high-yield credit versus high-quality bonds, Mark Haefele, UBS Wealth Management’s global chief investment officer, wrote in a note. Nick Note: Lets get this straight… Forget Bison the Biden candidate for president who has lost his dignity becoming a reality TV show screaming Meme. Like Trump! This is all about Lock And Load massive and i mean MASSIVE central bank coordinated Quantum Easing, Its party time for now. BUT later on it will bring about a global depression and financial system collapse. Until that day of reckoning lets let the two ton Guerrilla orgy make us a 40 foot shipping container load of money.
Nick Bit: So not so stupid after all after all! Some of you shit in your pants on yesterdays drop where i put you net long. Some of you were running around in your cage like a LIZARD with its head cut off. FOR THE RECORD I KNOW WHAT I AM DOING!
Dow Jones futures surged early Wednesday, along with S&P 500 futures and Nasdaq futures, as Super Tuesday election results showed Joe Biden faring well. An emergency Fed rate cut briefly boosted the major indexes Tuesday but stocks soon reversed sharply lower, with Apple (AAPL), Microsoft (MSFT), AMD (AMD), Adobe (ADBE) and Amazon.com (AMZN) all hitting resistance or losing support. A stock market rally attempt is still active, but for now the coronavirus stock market correction continues. The big 50-basis point Fed rate cut Tuesday morning provided a brief sugar high for the Dow Jones and other major indexes. But, like a sugar pill, the semi-surprise monetary stimulus didn’t treat the underlying economic impact of the Covid-19 outbreak and soon faded. This AM the Dow Jones futures rose 2.7% vs. fair value. S&P 500 futures climbed 2.2%. Nasdaq 100 futures advanced 2.2%. Dow Jones futures have been volatile the past few days, along with regular trading. That’s not unusual for a stock market correction. Nick Note: Wall Street and the talking DICK heads are clueless. The drop is over. we got our 10% and that is all the market has to give. Now its time to trade the rally back, So get you ass in gear! The world governments and central banks are in rare agreement. Coordinated central bank quantum easing and Fiscal Stimulus is what will drive stocks into a recovery. Obviously this will not last… But lest not get to far ahead of ourselves
OPEC and its Russia-led non-OPEC allies could push Brent Crude prices back to $60 a barrel if the coalition agrees to deepen the cuts by up to 1 million bpd, a senior executive at Russia’s second largest oil producer, Lukoil, told Reuters on Tuesday. OPEC and its allies meet in Vienna later this week to coordinate a joint action in response to the slump in demand and oil prices due to the coronavirus outbreak. The OPEC+ group’s joint technical committee (JTC) issued a proposal early last month that the producers extend the cuts as-is until the end of 2020 and deepen those cuts in the second quarter in response to the fact that the coronavirus “has had a negative impact on oil demand and oil markets.” Last week, OPEC’s leader Saudi Arabia was said to be asking members of the OPEC+ group to consider an additional collective cut of 1 million bpd— that is 400,000 bpd higher than the initial proposal of the panel. Russia continues to refuse to announce its position regarding deeper cuts by the OPEC+ coalition, but over the weekend Russian President Vladimir Putin suggested that Moscow will continue to play ball and cooperate with OPEC, although it sees current oil prices as “acceptable.”
Speaking to Reuters, Lukoil’s Vice President Leonid Fedun said that a collective OPEC+ cut of between 600,000 bpd and 1 million bpd would be sufficient to push Brent back up to $60 a barrel.
The comments of a top executive from Russia’s second biggest oil producer suggest that Russia will continue its cooperation with OPEC.
“We are ready to cut [our oil production] as much as we are told to. Better to sell less oil but at a higher price,” Fedun of Lukeoil told Reuters.
Nick Note: What the fuck good does it to you to hire a billion dollar hedge fund manger proven to see the future and still get a lizard brain going every time wallstreet TRIES TO FUCK you on the trades? You listen to some Eotrade desk clerk asshole (OR YOUR SIGNIFICANT OTHER) who will never understand markets or me or my recoes!…….. What the fuck good does it do you to be on the receiving end of a million dollar a month EXCLUSIVE research machine to get lizard out when the going gets tough. I told you weeks ago that OPEC+ WOULD cut 1 million barrels a day and I positioned you correctly.. DITTO on the S+P500… When it finally sinks into your brain you will realize that they are having another Lehman moment. Its the coronavirus wipe out. Its all hands on deck…. They will buy themselves a rally before the next leg down comes…… SO figure it the fuck out! Everyone NOW knows the financial system was in melt down in 2008..That information is worth about 25cents today. Few saw it coming ahead of time when you can make money like i did. I saw ahead of time the flock of black swans the coronavirus WOULD be and traded accordingly. The lizard asshole are their now… a day late and a million dollars short. Because the wipe out is over as global quantum easing takes hold…….. GOT IT?
The United States Federal Reserve announced on Tuesday that it decided to cut the target range for the federal funds rate by 50 basis points to the 1%-1.25% due to coronavirus concerns.
“The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity,” the central bank said in a statement and noted that all members of the Federal Open Market Committee (FOMC) voted in favor of the emergency move. “The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy,” the FOMC added.
The unexpected announcement comes just hours after US President Donald Trump urged the Fed to further lower rates as a result of the COVID-19 outbreak. Nick Note: The government is not not going to lose the system at this time. This is a VERY aggressive move… and despite the ripple events this will bring them a stock market rally
NEWSFLASH: The world’s top finance ministers and central bankers have just pledged to do what they can to protect the global economy from the coronavirus.
Here is a copy of their Joint statement from their hastiely arranged meeting:
“We, G7 Finance Ministers and Central Bank Governors, are closely monitoring the spread of the coronavirus disease 2019 (COVID-19) and its impact on markets and economic conditions.
Given the potential impacts of COVID-19 on global growth, we reaffirm our commitment to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks
Alongside strengthening efforts to expand health services, G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase. G7 central banks will continue to fulfill their mandates, thus supporting price stability and economic growth while maintaining the resilience of the financial system.
We welcome that the International Monetary Fund, the World Bank, and other international financial institutions stand ready to help member countries address the human tragedy and economic challenge posed by COVID-19 through the use of their available instruments to the fullest extent possible.
G7 Finance Ministers and Central Bank Governors stand ready to cooperate further on timely and effective measures.”
SEATTLE (AP) — An increase in testing for the coronavirus began shedding light Monday on how the illness has spread in the United States, including in Washington state, where four people died at a nursing home and some schools were closed for disinfection. New diagnoses in several states pushed the tally of COVID-19 cases past 100, and New Hampshire reported its first case, raising the total of affected states to 11. Seattle officials announced four more deaths, bringing the total in the U.S. to six. In Seattle, King County Executive Dow Constantine declared an emergency and said the county was buying a hotel to be used as a hospital for patients who need to be isolated. He said the facility should be available by the end of the week. “We have moved to a new stage in the fight,” he said. Vice President Mike Pence met with the nation’s governors and pledged to continue updating them weekly by teleconference. President Donald Trump met with pharmaceutical companies to talk about progress toward a vaccine. The deaths at a nursing home in suburban Kirkland, Washington, were especially troubling to health care experts because of the vulnerability of sick and elderly people to the illness and existing problems in nursing facilities.
“It’s going to be a disaster,” said Charlene Harrington, who studies nursing homes at the University of California, San Francisco. Infection is already a huge problem in U.S. nursing homes because of a lack of nurses and training.
In Texas, tension between U.S. and local officials brewed over the planned release Monday of more than 120 ex-passengers of the Diamond Princess cruise ship in quarantine in San Antonio. Mayor Ron Nirenberg declared a public safety emergency in an attempt to continue the quarantine. He and other officials in San Antonio called for more lab testing of the passengers after one woman tested positive after release. The Centers for Disease Control and Prevention said its case count includes 45 infections among people who were on the cruise ship, one more than previously reported. The count includes people who tested positive after returning from travel to outbreak areas in other parts of the world, their close contacts and infections that appear to be from community spread — people who did not travel or have known contact with other infected people.
The CDC recently broadened its guidelines for who should be tested for the new virus to include people with symptoms but without a travel history to virus hot zones.
More testing will bring more confirmed cases, experts said, but they cautioned that does not mean the virus is gaining speed. Instead, the testing is likely to reveal a picture of the virus’ spread that was previously invisible. In Seattle, schools and one skyscraper closed, but health experts cautioned that closures can have downsides. On Monday, the F5 technology company said it was closing its 44-story tower in downtown Seattle after learning an employee had been in contact with someone who tested positive for coronavirus. The employee tested negative, but company spokesman Rob Gruening said the tower was closed as a precaution.
More than 10 schools in the Seattle area were closed for deep cleaning over virus concerns, although the city-county public health department said it was not yet recommending longer-term school closures or cancellation of activities.
Closing schools and canceling large gatherings are what’s called social distancing, the idea that distancing people will reduce the spread of the illness. The evidence for those steps is “not as strong as we would like it to be,” Jennifer Nuzzo of the Johns Hopkins Center for Health Security cautioned Monday during a webinar. Measures such as school closures have been used during flu outbreaks, but the new coronavirus isn’t acting exactly like flu. And such steps are not guaranteed to protect. “Maybe it makes people more likely to stay at home. Maybe it doesn’t if people re-congregate elsewhere,” Nuzzo said. Trump and members of his Cabinet met at the White House with executives of 10 pharmaceutical companies to discuss ways to speed the development of a vaccine for the coronavirus. There are no proven treatments for COVID-19. The University of Nebraska Medical Center also began testing remdesivir in some Americans who were found to have COVID-19 after being evacuated from a cruise ship in Japan. It’s not clear how quickly such studies will answer whether any of the drugs help. Many patients recover without needing any treatment. The biggest concern is how to help the fraction who become severely ill. Nick Note: Your ha ha ha ha leaders are clueless. AND if you do not take matters into your own hands you will be dead meat…..
A glimpse of the future. I have been to the pandemic land and its a living HELL!
Coronavirus concerns are sending shoppers into panic-buying mode across the country. Bare shelves and frayed nerves were on full display over the weekend at Bay Area grocery stores as the coronavirus continued to spread. Shoppers described chaotic scenes, many of which were shared on social media: stacks of rice and toilet paper snatched up within seconds, checkout lines that snaked through entire stores, and jam-packed parking lots reminiscent of Christmas Eve. It’s the latest ripple effect of the outbreak of a still mysterious respiratory illness that in the past two months has caused more than 89,000 people around the world to fall ill. The virus that only a few weeks ago was mostly confined to China now has recorded cases in more than 60 nations.
With numbers climbing and no vaccine available, institutions such as the World Health Organization and the United States’ Centers for Disease Control and Prevention in recent days have warned that people should be prepared for a pandemic situation, including the possibility of having to stay confined in their homes for one or two weeks.
The results of that warning could be glimpsed in the depleted shelves and long lines in stores this weekend. “You see the videos of people loading water into their cars during hurricanes, stacks and stacks of them. That’s what was going on,” said Jeff Christner of Pacifica, who had an unexpectedly long trip with his wife to Costco in South San Francisco on Friday evening. “We couldn’t even believe it.” “People were panic-buying,” Christner said. The self-proclaimed “preparedness freak” managed to buy some of the small items on his list — batteries, canned chicken and medicine — but found many empty boxes. “I honestly couldn’t believe it. I didn’t expect to see what I saw.” People working at such stores played down the pandemonium, but agreed that it was not a normal weekend. “On a usual Saturday we have 3,000 customers. This Saturday we had 600 come through the first hour,” said a worker at the Costco in Richmond. “They’re buying the essentials — the news is telling us we need to be stocked up for 30 days.” Food products with a long shelf life were in demand, such as pasta or Spam or canned ham. The selection of rice available early Sunday afternoon consisted of several dozen 20-pound bags of basmati rice near the checkout counters: “Usually we’ll have six different varieties, with three to four pallets of each,” said the employee. The scene playing out with food hoarding is a more frenzied case of what has occurred in recent weeks in hardware stores, where face masks are all but impossible to find. Nick Note: do not waste your money on that sodium filled crap called survival food. Use your brain. Pasta, dried beans, Flour, corn meal and canned goods last for years. A freezer filled with meat is cool. Make sure you have 3 ways to keep your freezer going. A big chest freezer burns little power. to keep it working you need: Grid power, solar power and a generator. A year supply of food is cheap and easy. Remember the rule oldest in first out. Rotate rotate rotate your stock. People are dirty stinky animals. Hygiene supplies including soap, shampoo, tooth paste, Shit paper and the like Last for years. SO bulk up!
